IRS Personnel Flexibility's: An Opportunity toTest New Approaches

GAO discussed the possible implications of proposed legislation that
would give new personnel flexibility to the Internal Revenue Service
(IRS).

GAO noted that: (1) it examined two bills that would give IRS new
flexibilities in managing its workforce: H.R. 2676 and S. 1174; (2) the
bills are similar in that both would give IRS additional flexibilities
relating to performance management, staffing, and the development of
demonstration projects; (3) until the Commissioner of IRS develops an
implementation plan, acting in accordance with both the new legislation
and those provisions of Title 5 to which IRS would remain subject, and
has some experience in implementing the new flexibilities, there is no
way to predict just how helpful the new flexibilities may be in
improving IRS' actual performance; (4) GAO believes that H.R. 2676
appropriately gives IRS the opportunity to factor in other measures,
such as customer service results and employee behavior; (5) the
proposals for new personnel flexibility at IRS are a part of a broader
set of proposals to restructure the agency and improve its performance;
(6) GAO has recognized that to manage effectively for results, agencies
need the flexibility to manage according to their needs and mission; (7)
GAO also found that, over the years, Title 5 has evolved to give federal
agencies more flexibility than they once had--and often more then they
realize-- to tailor their personnel approaches to their missions and
needs; (8) the merit principles and certain other national goals such as
veterans' preference remain generally applicable to employees of all
agencies; (9) both H.R. 2676 and S. 1174, while giving new personnel
flexibilities to IRS beyond those already available to it under Title 5,
would specifically require that the agency continue to conform to the
merit principles and other national goals; (10) the proposals in H.R.
2676 and S. 1174 have been developed to provide IRS exceptions from
various Title 5 personnel requirements that IRS believes impede its
ability to accomplish its mission; (11) the bills' provisions
encouraging IRS to align its employees' performance with IRS mission and
goals are consistent with other public- and private-sector
organizational trends that have been given congressional endorsement
through the passage of the Government Performance and Results Act; and
(12) these proposals do not make clear the Office of Personnel
Management's role of ensuring IRS' continued compliance with the merit
principles.